Janashakthi posts stellar 1H performance - Announces interim dividend; maintains highest dividen...
Announces interim dividend; maintains highest dividend yield in category
Janashakthi Insurance PLC recorded another strong performance at the half year in 2012 and has announced a dividend of Rs. 1 per share.
The company raises the bar in its dividend yield and continues to maintain the highest stated capital structure. The dividend improves on the previous year’s high, delivering a 9.25% for 2012 versus 6.25% and 6.67% for 2011 and 2010 respectively. The 2012 dividend helps Janashakthi retain its position as the Insurer with the highest dividend yield in recent years.
“Insurance is a long-term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business,” said Managing Director Prakash Schaffter.
During the first six months ended 30 June, the profit after tax amounted to Rs. 164 million. Total assets rose from Rs. 13 billion to Rs. 14 billion and the company was able to record a 14% growth rate in its combined Gross Written Premium (GWP) of Rs. 3.8 billion.
“Janashakthi has recorded a stellar performance and has been consolidating the company’s products and services to provide our valuable customers an even better quality of service than we have done in the past. We have paid out a high amount on claims and this is indicative of our commitments to our customers in their time of need. It looks like Janashakthi has recorded the highest profit after tax amongst the peer group of insurance companies. This is a consistent performance in keeping with the company’s performance in the prior year, where the company again had the best results for profit after tax as at the half year mark,” stated Bertal Pinto-Jayawardene, General Manager – Finance and Planning.
“Janashakthi continues to reflect a very healthy stated capital structure in having nearly eight times the required level of capital for its business operation. We have the highest stated share capital of any listed insurance company by a long chalk. Insurance is a long-term business and the stated share capital gives a strong signal of commitment and stability to stakeholders of the sustainability of the business,” added Schaffter.
The net earned premium of Janashakthi was Rs. 3.2 billion and the Life Fund rose by 10% from Rs. 4.7 billion to Rs. 5.2 billion. The company also recorded a 10% growth in revenue from Rs. 3.4 billion to Rs. 3.7 billion and marked a motor sector growth of 18% in GWP which rose from Rs. 1.7 billion to Rs. 2.1 billion.
The company has recorded a stellar growth in all areas of general insurance and is focusing on developing the range of our products for the life segment to ensure that the company provides unmatched products for the differing needs of the Sri Lankan consumer.
Its Life Unlimited product, for instance, was the first and only product anywhere in the world to offer hospitalisation cover even after the policy matures. The company has also controlled cost and maintained healthy underwriting profits. The company has also controlled cost and maintained healthy underwriting profits.
This year Janashakthi entered into agreements with both Commercial Bank and Union Bank for bancassurance – providing customers convenient access to a multitude of Janashakthi’s insurance solutions for individuals and corporates. Janashakthi has also been expanding its already widespread branch network with significant growth in the north and east, opening a new branch in Mullaitivu and upgrading the Chavakachcheri office.
Janashakthi has a widespread branch network in all corners of the nation and has a growing market segment in rural Sri Lanka. The company’s stellar performances across the board need to be taken in the context of the company’s continuing commitment towards social responsibility initiatives.
The rural athletes’ sponsorship program needs to be highlighted as the consistent of the company over the years in this sphere. It paid off when the only female medallists for Sri Lanka at the Junior Asian Athletic Championship were athletes sponsored by Janashakthi.
Janashakthi Insurance PLC has served the nation for 18 years, and continues to shine in Sri Lanka’s insurance sector. Janashakthi has an exceptional track record of financial stability and claim settlement. It has the highest stated capital of Rs. 1.49 billion among quoted insurance companies in Sri Lanka, with Rs. 14 billion in assets and over Rs. 7 billion in annual gross written premiums. Janashakthi has paid over Rs. 20 billion in claims to its policyholders.
Janashakthi’s Board has established internal control systems, including a comprehensive risk identification, measurement and mitigation process. The composition of the Board is exemplary on many fronts, providing a proper balance of non-executive independent directors and due gender diversity.
The Board consists of W.T. Ellawala (Chairman), C.T.A. Schaffter (Deputy Chairman), Prakash Schaffter, L.C.R. de C. Wijetunge, Manjula Mathews, Deshamanya Dr. Nihal Jinasena, Ramesh Schaffter, Eardley Perera and Anushya Coomaraswamy.
